Spatial econometric analysis of spatial general equilibrium

Michael Beenstock*, Daniel Felsenstein, Dai Xieer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

13 Scopus citations

Abstract

A structural spatial econometric model for nine regions of Israel is estimated using non-stationary spatial panel data during 1987–2015. The model focuses on the relation between regional markets in labour, housing and capital when there is imperfect internal migration between regions, when capital is imperfectly mobile between regions, and when building contractors operate across regions. Since the regional panel data are non-stationary, the econometric methodology is based on spatial panel cointegration. The estimated model is used to simulate the temporal and spatial propagation of regional shocks induced, for example, by regional policy (land for housing, regional investment grants). Impulse responses are temporally and spatially state dependent. They are also highly persistent because of longevity in housing and capital.

Original languageAmerican English
Pages (from-to)356-378
Number of pages23
JournalSpatial Economic Analysis
Volume13
Issue number3
DOIs
StatePublished - 3 Jul 2018

Bibliographical note

Publisher Copyright:
© 2017, © 2017 Regional Studies Association.

Keywords

  • internal capital mobility
  • regional housing markets
  • regional labour markets
  • spatial econometrics
  • spatial general equilibrium (SGE)

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